Federal Reserve ChairJerome Powellemphasized the need to allow more time for restrictive monetary policies to bring inflation toward the Fed's 2% goal Wednesday while reassuring markets the Fed's policy stance remains appropriate, pushing back fears of rate hikes.

"The inflation data received so far this year have been higher than expected," Powell said adding that it is likely that gaining greater confidence in disinflation will take longer than previously thought.

Addressing concerns about potential rate hikes due to recent inflationary pressures, Powell said: "I think it's unlikely that the next policy rate move will be a...